![]() Treasuries widened to a more than five-month high. Rising concerns about the developers' woes spreading to other sectors was visible on Wednesday as the spread, or risk premium, between lower risk, investment grade Chinese firms and U.S. In the near future, real estate companies will issue bonds in the open market for financing, while banks and other institutional investors will assist via bond investment, the paper said.ĭebt-laden developers including Evergrande and Kaisa have also been looking to raise cash to repay their many creditors by selling some of their property and other business assets.īeijing has been prodding government-owned firms and state-backed property developers to buy some of Evergrande's assets to try to control the fall. ![]() Underlining the liquidity squeeze, some real estate firms disclosed plans to issue debt in the inter-bank market at a meeting with China's inter-bank bond market regulator, the Securities Times reported on Wednesday. Shares of developer Fantasia Holdings (1777.HK) plunged 50% on Wednesday after it said there was no guarantee it would be able to meet its other financial obligations following a missed payment of $205.7 million due on Oct. Worries over the potential fallout from Evergrande have also slammed the bonds of Chinese real estate companies. S&P considers a rating under "BBB-" to be speculative grade. S&P Global Ratings said separately it had downgraded Shimao Group Holdings' (0813.HK) rating to "BB+" from "BBB-" over concerns that tough business conditions would hinder the company's efforts to reduce debt. The developer has coupon payments of more than $59 million due on Thursday and Friday. ![]() Kaisa has the most offshore debt of any Chinese developer, after Evergrande. ![]() REUTERS/Aly Song/File Photo Acquire Licensing Rights ![]()
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